Zain set to gain $3.3 bn from stake sale to Bharti | india | Hindustan Times
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Zain set to gain $3.3 bn from stake sale to Bharti

india Updated: Mar 31, 2010 22:33 IST
HT Correspondent

Kuwait-based Mobile Telecommunications Company KSC, which owns the Zain brand, on Wednesday said it would earn $3.3 billion (Rs 15,400 crore) from the sale of its African assets to Bharti Airtel, a deal which has an enterprise valuation of $10.7 billion (Rs 49,000 crore).

When the two companies announced details of the proposed deal about a month ago, industry experts in India had expressed opinion that the valuation was excessively high for Bharti. However, Bharti Group CEO Sunil Mittal had said at the time that the price was fair.

Bharti has taken a debt of about $8.3 billion (Rs 38,180 crore) for the acquisition.

In a filing to the Kuwait Stock Exchange, Zain said it has sold its African operations in all countries other than Sudan and Morocco to Bharti Airtel for $10.7 billion and the two parties have signed definite agreements.

The Zain statement said that from the receipts it would repay up to $ 4.2 billion (Rs 19,530 crore) of its credit facilities in addition to the allocation and expenditure of the deal with Bharti.